MADISON, Wis., March 9, 2021 /PRNewswire/ -- CUNA Mutual Group, a broad financial services provider, today announced it has entered into a definitive agreement to acquire Assurant's prearranged funeral insurance and final expense business in the U.S. and Canada, serving more than 2 million consumers – for approximately $1.3 billion. This investment will enhance CUNA Mutual Group's ability to help ensure middle market consumers have access to solutions that help build financial stability.
Prearranged funeral insurance, also known as preneed, and senior lifestyle protection solutions are designed to help ease the emotional and financial burdens of consumers and their families related to planning for the later chapters of life. Acquiring Assurant's best-in-class prearranged funeral insurance and final expense solutions business enables CUNA Mutual Group to further serve the growing middle market.
"This acquisition allows us to expand the ways we reach middle market consumers, helping more people make financial decisions that work for them and their situation," said Robert N. Trunzo, president and CEO, CUNA Mutual Group. "We will continue to build, buy and create partnerships to bring additional insurance, investment, and technology solutions into our portfolio to support our strategic priorities, protect even more consumers and augment our resources and financial strength."
Like CUNA Mutual Group, Assurant's preneed business is focused on protecting consumers and their families with simple, easy to understand products. The preneed business will operate with autonomy at its Rapid City, South Dakota location with limited integration into CUNA Mutual Group's other business lines or operations. Since preneed solutions are provided to consumers primarily through funeral homes, the company has no plans at this time to offer these services through financial institutions, such as credit unions and banks.
The acquisition provides the opportunity to add a business already at scale as CUNA Mutual Group enters new markets to protect even more consumers. The business brings $6.5 billion of face value in-force. Assurant's distribution model for preneed and final expense solutions includes a longstanding partnership with the largest funeral home provider in North America and many other funeral home partners and distributors across the U.S. and Canada.
The agreement includes a multiyear extension of the 23-year automobile mechanical repair coverage partnership between the companies.
Assurant President and Chief Executive Officer Alan Colberg said, "Today's announcement represents a positive outcome for all of our stakeholders and importantly, for our Preneed employees, customers and policyholders. I am also excited to continue to further strengthen our longtime partnership with CUNA Mutual Group, built upon shared values and aligned culture and commitment to customer excellence."
Trunzo added, "CUNA Mutual Group remains committed to helping credit unions and other strategic partners excel at reaching and addressing consumers' needs. Ultimately, we are working to ensure a brighter financial future is accessible to everyone."
The acquisition is expected to close by the end of the third quarter, subject to applicable regulatory approvals and other customary closing conditions. Perella Weinberg Partners LP is acting as financial advisor to CUNA Mutual Group, and Foley & Lardner LLP is acting as its legal counsel.
About CUNA Mutual Group: Built on the principle of "people helping people," CUNA Mutual Group is a financially strong insurance, investment and financial services company that believes a brighter financial future should be accessible to everyone. Through our company culture, community engagement, and products and solutions, we are working to create a more equitable financial system that helps to improve the lives of those we serve and our society. For more information, visit www.cunamutual.com.
About Assurant Assurant, Inc. (NYSE: AIZ) is a leading global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases. Anticipating the evolving needs of consumers, Assurant partners with the world's leading brands to develop innovative products and services and to deliver an enhanced customer experience. A Fortune 500 company with a presence in 21 countries, Assurant offers mobile device solutions; extended service contracts; vehicle protection services; pre-funded funeral insurance; renters insurance; lender-placed insurance products; and other specialty products. The Assurant Foundation strengthens communities by supporting charitable partners that help protect where people live and can thrive, connect with local resources, inspire inclusion and prepare leaders of the future.
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Corporate headquarters are located at 5910 Mineral Point Road, Madison, WI 53705.